Gold Prices Reach Nearly $4,590 an Ounce

SadaNews - Gold stabilized after surging on Monday, amid concerns about the independence of the Federal Reserve, following a threat from U.S. President Donald Trump's administration to charge Chairman Jerome Powell with a criminal offense.

The precious metal was trading near $4,590 an ounce, after jumping by 2% in the previous session, as Powell stated that the potential charges represent a continuation of attempts to pressure the central bank.

The attacks on the Federal Reserve revived what is known as "Sell America" trades, as the dollar weakened on Monday, and U.S. Treasury bonds faced selling across the yield curve.

Trump's intervention threatens to undermine the Federal Reserve's ability to control inflation, adding pressure on the markets, igniting what is referred to as "currency devaluation" trades, where traders sell the dollar and other assets exposed to political and financial shocks.

His repeated attacks on the monetary authority were a key factor in pushing gold to record consecutive highs last year.

Gold Enters 2026 on a Solid Foundation

The yellow metal built on this momentum as 2026 began, with many traders showing confidence in its long-term attractiveness.

Citi Group has raised its near-term forecast, estimating that the price will reach $5,000 an ounce and silver will reach $100 an ounce in the next three months, amid rising geopolitical risks, physical supply shortages, and renewed uncertainty regarding the independence of the Federal Reserve.

Gold declined in spot trading by 0.2% to $4,585.35 an ounce by 9:04 AM Singapore time. The Bloomberg Dollar Index remained steady. Silver fell by 1.4% after it surged more than 6% on Monday.